WANGNENG(SZ:002034) Xinda Securities·2025-05-05 05:23Investment Rating - The investment rating for 旺能环境 (002034) is not explicitly stated in the report [1]. Core Views - The report highlights that the company's performance is under short-term pressure due to impairment provisions, while the operational efficiency of waste incineration is continuously improving [1][3]. - In 2024, the company achieved total revenue of 3.173 billion yuan, a slight decrease of 0.17% year-on-year, and a net profit attributable to shareholders of 561 million yuan, down 6.9% year-on-year [1][3]. - The first quarter of 2025 showed a positive trend with total revenue of 874 million yuan, an increase of 11.12% year-on-year, and a net profit attributable to shareholders of 201 million yuan, up 10.62% year-on-year [1][3]. Summary by Sections Financial Performance - In 2024, the company reported total revenue of 3.173 billion yuan, a decrease of 0.17% year-on-year, primarily due to a reduction in BOT project construction revenue [3]. - The net profit attributable to shareholders was 561 million yuan, a decline of 6.9%, influenced by increased bad debt provisions and asset disposal losses [3]. - The gross profit margin improved to 38.54%, up 1.2 percentage points year-on-year [3]. Business Segments - The main business segments generated the following revenues in 2024: - Municipal solid waste operations: 2.296 billion yuan (+3.5%) - Kitchen waste operations: 462 million yuan (+27.29%) - BOT project construction: 31 million yuan (-88.18%) - Rubber recycling: 187 million yuan (+81.45%) - Lithium battery recycling: 57 million yuan (-33.89%) [3]. - The gross profit margins for these segments were 47.89%, 31.33%, 0%, -5.64%, and -59.9%, respectively [3]. Operational Efficiency - The company has 21 operational waste-to-energy plants with a total capacity of 21,820 tons, including the South Taihu Phase V project, which has improved its thermal efficiency from 22% to 30% [3]. - In 2024, the total power generation was 3.036 billion kWh, with an average on-grid electricity price of 0.53 yuan per kWh [3]. Future Outlook - The company forecasts revenues of 3.359 billion yuan in 2025, with a growth rate of 5.9%, and net profits of 693 million yuan, reflecting a growth rate of 23.5% [6]. - The cash flow from operating activities for 2024 was 1.596 billion yuan, a 26.75% increase from 2023, supporting a high dividend payout [6].